Tags |
|
|
Links |
|
|
Add You - How To Prepare an Inventory - UK Residential Landlords
With the growth of internet, online scams too have grown. These online scams trap gullible people into parting with their hard earned money for products or services that do not exist.There are certain online scams that specifically prey on people or businesses who are too busy to check on the details, while there are others that specifically target the elderly or people whose native tongue is not English.Some of the most popular online scams are listed below and you would be well advised to stay away from them.1. Nigerian Letter ScamThis is probably one of the best known online scams but it still manages to get people to part with their hard earned money. Invariably you receive an e-mail, usually written in capital letters and starts out like this:"DEAR SIR/MADAM: I REPRESENT THE RECENTLY DEPOSED MINISTER OF AGRICULTURE FOR NIGERIA, WHO HAS EMBEZZLED 30 MILLION DOLLARS FROM HIS STARVING COUNTRYMEN AND NOW NEEDS TO GET IT OUT OF THE COUNTRY..."The letter says the scammers are seeking an accomplice who will transfer the funds into their account for a cut of the total--usually around 30 percent. You will be asked to travel overseas to meet with the scammers and complete the necessary paperwork. But before the transaction can be finalized, you must pay thousands of dollars in "taxes," "attorney costs," "bribes," or other advance fees.However, there is no minister or money other than the money you paid in advance. Victims who travel overseas may find themselves physically threatened and not allowed to leave until they cough up the cash. This online scam is also referred as Nigerian 419 Letter, where the 419 stands for the section of Nigeria's penal code that this online scam violates.2. Lottery ScamsIn this online scam you will receive an email informing you that you have won a lottery or that the XYZ lottery company went into a draw for the distribution of unclaimed money and your email address was selected. You will be asked to make a payment, often in cash, for the money to be released and sent to you. Unfortunately, there is no money and you never hear from the XYZ company again.Remember, if you have not purchased a lottery ticket it is unlikely that you could have won anything specially if you need to pay to claim it. Lottery companies and agencies do not work that way.3. Online AuctionsUnfortunately, as online auctions sites have increased in popularity so have the online scams associated w
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a pu
No one asks for a raise just for the sake of asking. You need a raise, maybe to move to a new home, or you may want to support your spouses college education. You may even be putting in 50-60 hours a week for the sole benefit of the employer; whatever the reason, you have identified that you need it.The big question is, do you deserve it? You can confidently ask for the raise when you are sure of yourself.Five Ways To Get A Raise.Here are five sure-fire ways of getting a raise.1. Do not Ask For A Raise Without A Fail-Proof Plan In Place: Bosses sometimes listen only to well thought out plans which they can hardly refute. If you did not know, they are where they are because can resist such demands which call for additional expenses and can improve the bottom line of the company by curtailing costs (i.e. your salary!). Your plan can include how an additional $10K or $20K raise can benefit the company. You presentation needs to include what the company is losing and where, by situations not being attended to and how you propose to reverse the trend. But play your cards safely; it can backfire on you if you disclose all your plans.2. You Need To Occupy An Indispensable Position To Force A Raise: Employers will always be looking to reduce the biggest component of expenditures, which is salary, by at least capping it. However, this does not limit them to raise a high performers salary even when the budget is very tight. Once you are indispensable, your boss sees you as a value adder and he can ill-afford to lose you to his competitor.3. Know The Industry Standard Salary For Your Position: This is one of the main reasons for asking for a raise; you have recently discovered that you are being poorly paid vis-a-vis your counterparts in other organizations. But if you are unaware of this, your boss may turn down your proposal saying you are already drawing the highest salary in the industry; or this is the highest you can get anywhere for this position. Know what the standard is in comparison to what you are already getting!4. Have Options Ready To Suggest To Your Boss: It is possible that the boss might be bound by true constraints. Keep ready alternatives like a housing allowance or extra bonuses directly connected to your performance. Having taken the step to ask for a raise, you shouldn’t come away empty-handed. And you will not, if you have prepared correctly.5. Predict The Grounds On Which You Can Be Rejected: The objections that your boss might
The inventory/schedule of condition has several functions:
* it is a catalogue of the property being let
* it records the condition of the property and any items that are included in the tenancy
* it forms part of the legally binding contract that is set out in the tenancy agreement between the tenant and the landlord.
Why it’s important to prepare one?
For years when it comes to inventories, landlords have got away with scribbling a few notes on a bit of paper about the condition of their property. The general principle being that accurate records were not needed. This was because as a landlord you were both ‘judge and jury’ and if and what part of the deposit was withheld to cover the costs of repair and cleaning. This is not to say that tenants had no remedies if they felt aggrieved with the decision. Under the pre April 6 2007 system they were able to take the landlord to court if they thought that they were unreasonably withholding their deposit. The judge would then decide on the merits of their claim. However, the ‘hassle’ and inconvenience to the tenant of carrying this through meant that in most cases tenants do not take matters any further, especially where the sums involved were small.
Things will never be the same again
The Tenancy Deposit Scheme (TDS) will change this cosy amateur approach in several important ways:
1. No longer will the landlord have the benefit of controlling the monies from the outset
2. Because of point 1 many tenants are likely to feel emboldened to take on the landlord if they think they even have a chance of winning the argument. There is likely to be a large jump in the number of cases where the tenant disputes the withholding of all or part of their deposit
3. The inventory will become far more important for many landlords as it is the key document in proving the condition of the property before a tenant moved in
4. The way of assessing disputes will now change. Rather than matters being resolved through the courts, most will be decided by independent arbitrators. Arbitration is generally seen as less adversarial and fixed by legal procedure than the courts and this is likely to result in outcomes that differ from those that occur currently.
Message to landlords
The message to landlords is clear. No longer will they be ‘judge and jury’. The result is that the number of contested deposits is likely to increase dramatically. Therefore it is more important than ever to have a carefully prepared inventory at ‘check in’ and that at ‘check out’ an accurate record of the properties condition is made. Otherwise they could end up significantly out of pocket. Landlords should look out for the TDS compliant inventory coming soon to the registered users of www.propertyhawk.co.uk
Landlords however do have an option not to prepare the inventory themselves.
There are two ways of avoiding the preparation process.
Firstly, if the property is fully managed by an agent then inventory taking and the subsequent ‘check out’ should be carried out by them as one of their management duties. This obviously will save you time. It will also mean that if there are problems with the condition or cleanliness of the property; the agent should rectify these and use the deposit monies to cover this expense before handing the balance back to the tenant.
The second way to get around having to prepare an inventory is to employ a specialist Inventory Clerk. These individuals carry out the whole process for you; they can also do the mid tenancy inspection as well as the final ‘check out’. The downside to this service is that it is not cheap. The costs of a check in and check out run to about ?100-140 each for a standard 2 bed flat. These fees do vary, depending on the size of the property and area of the country (London will be the most expensive).
For this you will have the piece of mind that the inventory has been done professionally and comprehensively. It is possible to pass on the cost of this service to the tenants. This is quite common practice where an agent is used. However there are no hard and fast rules and the agent could equally pass on the cost of this service to the landlord. It is therefore important to be clear from the outset about what their letting and management fees include before signing up for their service.
How to prepare an inventory
The most essential thing about preparing an inventory is to adopt a system that is simple so that it is easily remembered and replicated. This will ensure that you achieve consistent results. In developing your system ensure that the inventory it produces is:
* Ordered - this way when preparing it you are less likely to miss things and also that anyone reading it can easily follow the contents.
* Comprehensive - remember this will be the document of reference should a dispute a rise and could potentially end up in front of the judge
* Verifiable - its accuracy can be agreed by anyone with few or nil additions or alterations.
* Written in Plain English - so it is easy to read and understand. This will help should the case go to court when a clearly written unambiguous report will have more credibility than one where a tenant could claim that they were unsure what they were signing. This shouldn’t be a defence but judges are only human.
The best way of producing inventories that achieve the key points given above is to divide any property into a series of rooms. This is largely straight forward; for instance most properties will have a kitchen, lounge, bedrooms, etc. However you will also have to categorise some parts of the property as a room such as hallways, a conservatory, gardens, garages, etc. Once you have established a list of these rooms; it is then a case of subdividing them into a series of component parts. These component parts once categorised will build up an overall framework.
The standard component parts used in the Property Hawk inventory are as follows:
* Doors
* Floor
* Walls
* Ceiling
* Light fittings
* Wood work
* Appliances
* Windows
* Heating
* Electricals
* Furnishings
As well as the standard component parts each room may have individual parts specific to that room; these must also be noted down. Once all these parts have been recorded, the next stage is to record items that are not fixtures or fittings. This is particularly important and time consuming where a property is furnished. In this case it will be necessary to note down every item supplied. Once this is done; you will have a complete inventory.
The next stage is to complete what is known as the schedule of condition. This can be carried out concurrently with the inventory. The object of the process is to note down the condition of each component part.
For example, in the case of the lounge under the component part of doors you would record the fact that there are two doors, newly white painted with chrome handles. This part of the process is particularly important because as I go on to discuss later it is disputes over the condition of items and what is ‘fair wear and tear’ that are the most common. This aspect is far more difficult to prove than the removal of an item and it is fair to say that judges will often side with the tenant unless the landlord can prove conclusively that it was new or in good condition. This highlights the importance of retaining receipts not only for tax purposes but also in case of a disagreement with your tenant resulting in arbitration or court action where you will then have to prove the condition of your property at ‘handover’.
Many inventory clerks use a series of abbreviations to speed up the process. This is fine providing that a full list of terms accompanying the inventory. Whilst abbreviations are useful they can also be confusing for the tenant who will need to verify the report once it is completed.
The important things to ensure are:
* That there is an adequate description of each item so that they can be verified
* That an accurate statement of condition accompanies each component item
You should avoid at all costs ambiguous language such as ‘spotlessly clean’ or emotive language so as ‘lovely fireplace’. Keep descriptions brief and factual.
If you follow these guidelines then you should end up with a comprehensive written inventory and schedule of condition that will then cover you for all eventualities.
The ‘check in’
The check in occurs at the point that the tenancy has been agreed and the landlord is in a position to hand over the keys. It is the process by where the tenant and landlord / agent who should have a fully prepared inventory / statement of condition will need to agree the cleanliness of the property as well as confirm the details of the inventory. The process involves a tour of the property. Where there are discrepancies between the original inventory then these should be noted down. Once an acceptable copy has been drawn up the landlord and tenant must sign and date it to acknowledge that the document is a fair representation of the facts. The inventory then forms part of the terms of the tenancy agreement. When photos are involved they need to be signed and dated or referred to as a clause in the tenancy agreement. (see previous sections).
Mid term inspection
The mid term inspection is one carried out by the landlord or their agent approximately halfway through a tenancy to ensure that the property is being maintained. Generally it is a short visit and the landlord or agent should use the agreed inventory to cross check the property that an unreasonable amount of damage has not occurred and that the property is being cleaned. It can also be a useful way of the landlord finding out about any small problems with the property which the tenant has failed to report. In this way the landlords should be in a position to take pre-emptive action to tackle an issue before it gets too serious. The first mid term inspection is also a way of the landlord checking on the tenant and making a judgement as to whether they are happy for the tenancy to continue or whether they wish to proceed to issue a section 21 notice requiring possession.
The ‘check out’
This is the final stage of any tenancy and the point when the benefits of having a well prepared inventory become apparent. It may be that many months has elapsed since the start of the tenancy which means unless you are blessed with a photographic memory the original condition of the property at the time of the ‘check in’ is likely to be ‘hazey’ at best. You should arrange to meet the tenant at the property to go through the inventory and check its’ condition at the time that they are ready to move out. Ensure that you allow yourself plenty of time to conduct a thorough inspection. Use a copy of the original inventory to note down any item of damage or cleanliness. Be careful to make accurate and thorough notes as these could form part of your case should a dispute a rise and go to court or arbitration.
Identifying substitute items
I’m afraid it is not uncommon for tenants to swap some of the smaller items of supplied furnishings (curtains, lampshades, pillows, for example) for their own. I don’t have a problem with this as long as the tenant then puts back these items at the end of the tenancy. What you don’t want is that the tenant swaps their ‘rubbish’ with your good stuff. This is why it is so important when preparing the inventory to
fully describe each item, quoting colour size, model and serial numbers where possible
even code mark your items with say a unique indelible mark.
Identifying extra items
Gaining unwanted ‘stuff’ is sometimes more of a problem than loosing items or having them replaced by inferior goods. My experience particularly with students and sharers is that tenants can use moving as an opportunity to discard their unwanted belongings. I’m sure that they think that they are being very generous and if you are an avid ‘car booter’ it can provide a continuous supply of delightful ‘bric-a-brac’. I’m not and it is very time consuming and expensive to get rid of items; particularly larger ones such as furniture and appliances. Local authorities will generally take large domestic items away for a small fee of about ?15; but why should you have to organise and pay for the removal of somebody else’s rubbish! I did have recently a case where a tenant left their car. Look out in particular for stuff being left in the cellar, attic and garage. These are all convenient hiding places often used by tenants. My advice is, don’t agree the ‘check out’ until the property is ‘completely’ cleared to your satisfaction.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents actually prefer this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents prefer that this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a pur
More and more often, clients have been asking me, "how do you get it all done, Alicia?""I don't know you how do it, Alicia...with a little one running around and so few hours in the day to actually focus on your work. Somehow you manage to write your weekly ezine, hold a bunch of teleseminars each month, run your 10-week group coaching program, AND be creating and promoting new offers and new products all the time. I'm so impressed and inspired by you, but more than that, I want to know how you do it all!?"To be honest, sometimes I wonder myself! Something I often say to other, especially new, mothers is, "despite what everyone tells you to do, do whatever works for YOU." In a way, that's how I started running my business after I had my daughter. I just did whatever worked. I still do.Now that she's a bit older, it's easier to manage both being a fulltime mother along with running a successful business. Notice I said it was easier - not easy!Over time, I've figured out how to get the most important things done while still being able to focus the majority of my time on my family (after all, that's one of the reasons why I went into business for myself in the first place).Here are the top three things that are working for me right now:1. Setting my work hoursMy typical work day looks like this: I get up shortly before my daughter to get organized for the day. This jump-starts my day and makes me feel like I've already accomplished something before I spend the next several hours having tea parties, blowing bubbles, exploring the neighborhood or running errands.But I don't get any real work done until her naptime. I work for about two hours while she naps in the afternoon, four days a week. Then for another two hours after she goes to bed at night three evenings a week. My biggest block of focused time, usually reserved for writing and product creation, is on Saturdays, when I work approximately 6 hours. During a perfect week, that would give me about 20 hours of time dedicated to business. However, there's never a perfect week (Chloe doesn't nap, I have some pressing non-business-related task that I can only take care of when she's sleeping, etc.), so my best guess is that this gives me about 15 productive hours to work on my business each week.2. Ignoring the phoneI'm serious when I say that I ignore the phone. Some of my clients get heart palpitations when I tell them that I NEVER jump when the phone rings and suggest they do the
For this you will have the piece of mind that the inventory has been done professionally and comprehensively. It is possible to pass on the cost of this service to the tenants. This is quite common practice where an agent is used. However there are no hard and fast rules and the agent could equally pass on the cost of this service to the landlord. It is therefore important to be clear from the outset about what their letting and management fees include before signing up for their service.
How to prepare an inventory
The most essential thing about preparing an inventory is to adopt a system that is simple so that it is easily remembered and replicated. This will ensure that you achieve consistent results. In developing your system ensure that the inventory it produces is:
* Ordered - this way when preparing it you are less likely to miss things and also that anyone reading it can easily follow the contents.
* Comprehensive - remember this will be the document of reference should a dispute a rise and could potentially end up in front of the judge
* Verifiable - its accuracy can be agreed by anyone with few or nil additions or alterations.
* Written in Plain English - so it is easy to read and understand. This will help should the case go to court when a clearly written unambiguous report will have more credibility than one where a tenant could claim that they were unsure what they were signing. This shouldn’t be a defence but judges are only human.
The best way of producing inventories that achieve the key points given above is to divide any property into a series of rooms. This is largely straight forward; for instance most properties will have a kitchen, lounge, bedrooms, etc. However you will also have to categorise some parts of the property as a room such as hallways, a conservatory, gardens, garages, etc. Once you have established a list of these rooms; it is then a case of subdividing them into a series of component parts. These component parts once categorised will build up an overall framework.
The standard component parts used in the Property Hawk inventory are as follows:
* Doors
* Floor
* Walls
* Ceiling
* Light fittings
* Wood work
* Appliances
* Windows
* Heating
* Electricals
* Furnishings
As well as the standard component parts each room may have individual parts specific to that room; these must also be noted down. Once all these parts have been recorded, the next stage is to record items that are not fixtures or fittings. This is particularly important and time consuming where a property is furnished. In this case it will be necessary to note down every item supplied. Once this is done; you will have a complete inventory.
The next stage is to complete what is known as the schedule of condition. This can be carried out concurrently with the inventory. The object of the process is to note down the condition of each component part.
For example, in the case of the lounge under the component part of doors you would record the fact that there are two doors, newly white painted with chrome handles. This part of the process is particularly important because as I go on to discuss later it is disputes over the condition of items and what is ‘fair wear and tear’ that are the most common. This aspect is far more difficult to prove than the removal of an item and it is fair to say that judges will often side with the tenant unless the landlord can prove conclusively that it was new or in good condition. This highlights the importance of retaining receipts not only for tax purposes but also in case of a disagreement with your tenant resulting in arbitration or court action where you will then have to prove the condition of your property at ‘handover’.
Many inventory clerks use a series of abbreviations to speed up the process. This is fine providing that a full list of terms accompanying the inventory. Whilst abbreviations are useful they can also be confusing for the tenant who will need to verify the report once it is completed.
The important things to ensure are:
* That there is an adequate description of each item so that they can be verified
* That an accurate statement of condition accompanies each component item
You should avoid at all costs ambiguous language such as ‘spotlessly clean’ or emotive language so as ‘lovely fireplace’. Keep descriptions brief and factual.
If you follow these guidelines then you should end up with a comprehensive written inventory and schedule of condition that will then cover you for all eventualities.
The ‘check in’
The check in occurs at the point that the tenancy has been agreed and the landlord is in a position to hand over the keys. It is the process by where the tenant and landlord / agent who should have a fully prepared inventory / statement of condition will need to agree the cleanliness of the property as well as confirm the details of the inventory. The process involves a tour of the property. Where there are discrepancies between the original inventory then these should be noted down. Once an acceptable copy has been drawn up the landlord and tenant must sign and date it to acknowledge that the document is a fair representation of the facts. The inventory then forms part of the terms of the tenancy agreement. When photos are involved they need to be signed and dated or referred to as a clause in the tenancy agreement. (see previous sections).
Mid term inspection
The mid term inspection is one carried out by the landlord or their agent approximately halfway through a tenancy to ensure that the property is being maintained. Generally it is a short visit and the landlord or agent should use the agreed inventory to cross check the property that an unreasonable amount of damage has not occurred and that the property is being cleaned. It can also be a useful way of the landlord finding out about any small problems with the property which the tenant has failed to report. In this way the landlords should be in a position to take pre-emptive action to tackle an issue before it gets too serious. The first mid term inspection is also a way of the landlord checking on the tenant and making a judgement as to whether they are happy for the tenancy to continue or whether they wish to proceed to issue a section 21 notice requiring possession.
The ‘check out’
This is the final stage of any tenancy and the point when the benefits of having a well prepared inventory become apparent. It may be that many months has elapsed since the start of the tenancy which means unless you are blessed with a photographic memory the original condition of the property at the time of the ‘check in’ is likely to be ‘hazey’ at best. You should arrange to meet the tenant at the property to go through the inventory and check its’ condition at the time that they are ready to move out. Ensure that you allow yourself plenty of time to conduct a thorough inspection. Use a copy of the original inventory to note down any item of damage or cleanliness. Be careful to make accurate and thorough notes as these could form part of your case should a dispute a rise and go to court or arbitration.
Identifying substitute items
I’m afraid it is not uncommon for tenants to swap some of the smaller items of supplied furnishings (curtains, lampshades, pillows, for example) for their own. I don’t have a problem with this as long as the tenant then puts back these items at the end of the tenancy. What you don’t want is that the tenant swaps their ‘rubbish’ with your good stuff. This is why it is so important when preparing the inventory to
fully describe each item, quoting colour size, model and serial numbers where possible
even code mark your items with say a unique indelible mark.
Identifying extra items
Gaining unwanted ‘stuff’ is sometimes more of a problem than loosing items or having them replaced by inferior goods. My experience particularly with students and sharers is that tenants can use moving as an opportunity to discard their unwanted belongings. I’m sure that they think that they are being very generous and if you are an avid ‘car booter’ it can provide a continuous supply of delightful ‘bric-a-brac’. I’m not and it is very time consuming and expensive to get rid of items; particularly larger ones such as furniture and appliances. Local authorities will generally take large domestic items away for a small fee of about ?15; but why should you have to organise and pay for the removal of somebody else’s rubbish! I did have recently a case where a tenant left their car. Look out in particular for stuff being left in the cellar, attic and garage. These are all convenient hiding places often used by tenants. My advice is, don’t agree the ‘check out’ until the property is ‘completely’ cleared to your satisfaction.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents actually prefer this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents prefer that this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a pu
You've been lurking around eBay for a few months now. You might have even registered and perhaps bought the odd item. Good for you - you have at least taken steps in the right direction!So what now? You want to start selling and taking your share of the $40+ million that changes hands on eBay every day, but just don't know where to begin. You will find a lot of conflicting advice out there. Some advocate going straight into drop shipping, others say find a niche, but my advice is to take just a few steps at a time.Although you may be itching to go straight for the high paying options like selling ipods or laptops, just think for a minute and ask yourself "Would I buy from someone with zero seller feedback?" Chances are, unless it is a super niche with limited product availability, you would answer that question with a resounding "No". Also, what if your supplier proved unreliable and your early transactions were absolute disasters. Not the best situation to put yourself in, is it.One of the best ways to get started as a seller on eBay is also one of the easiest. How often do you go round and fill a basket or bag with unwanted items for your local charity collection - two, maybe three or more times a year. What if you put those items up on eBay as a way of getting positive seller feedback? Look at it logically - you were prepared to give it away for nothing, so even if it only sells for pennies, you are not losing out, as each sale is improving your credibility on eBay (or whichever site you choose to trade on for that matter). If your conscience is getting the better of you, you could decide to donate these initial profits to the charity who you were going to donate the items to.After the "charity bags" have been sold, why not do a spring clean and identify more items to list. The stack of vinyl LPs you have long since abandoned in favour of compact discs, the VHS tapes you no longer watch - even the pair of jeans you know you will never squeeze into again that you are hanging on to for posterity! These will all contribute to you getting a positive reputation as a seller prior to you starting selling items for the big bucks.Taking this approach also eases you into the selling process with minimal risk. Look on it as a trial run for the long term - you can get practice and experience writing your listings and you get to see the whole selling process a few times before it "really matters"
Many inventory clerks use a series of abbreviations to speed up the process. This is fine providing that a full list of terms accompanying the inventory. Whilst abbreviations are useful they can also be confusing for the tenant who will need to verify the report once it is completed.
The important things to ensure are:
* That there is an adequate description of each item so that they can be verified
* That an accurate statement of condition accompanies each component item
You should avoid at all costs ambiguous language such as ‘spotlessly clean’ or emotive language so as ‘lovely fireplace’. Keep descriptions brief and factual.
If you follow these guidelines then you should end up with a comprehensive written inventory and schedule of condition that will then cover you for all eventualities.
The ‘check in’
The check in occurs at the point that the tenancy has been agreed and the landlord is in a position to hand over the keys. It is the process by where the tenant and landlord / agent who should have a fully prepared inventory / statement of condition will need to agree the cleanliness of the property as well as confirm the details of the inventory. The process involves a tour of the property. Where there are discrepancies between the original inventory then these should be noted down. Once an acceptable copy has been drawn up the landlord and tenant must sign and date it to acknowledge that the document is a fair representation of the facts. The inventory then forms part of the terms of the tenancy agreement. When photos are involved they need to be signed and dated or referred to as a clause in the tenancy agreement. (see previous sections).
Mid term inspection
The mid term inspection is one carried out by the landlord or their agent approximately halfway through a tenancy to ensure that the property is being maintained. Generally it is a short visit and the landlord or agent should use the agreed inventory to cross check the property that an unreasonable amount of damage has not occurred and that the property is being cleaned. It can also be a useful way of the landlord finding out about any small problems with the property which the tenant has failed to report. In this way the landlords should be in a position to take pre-emptive action to tackle an issue before it gets too serious. The first mid term inspection is also a way of the landlord checking on the tenant and making a judgement as to whether they are happy for the tenancy to continue or whether they wish to proceed to issue a section 21 notice requiring possession.
The ‘check out’
This is the final stage of any tenancy and the point when the benefits of having a well prepared inventory become apparent. It may be that many months has elapsed since the start of the tenancy which means unless you are blessed with a photographic memory the original condition of the property at the time of the ‘check in’ is likely to be ‘hazey’ at best. You should arrange to meet the tenant at the property to go through the inventory and check its’ condition at the time that they are ready to move out. Ensure that you allow yourself plenty of time to conduct a thorough inspection. Use a copy of the original inventory to note down any item of damage or cleanliness. Be careful to make accurate and thorough notes as these could form part of your case should a dispute a rise and go to court or arbitration.
Identifying substitute items
I’m afraid it is not uncommon for tenants to swap some of the smaller items of supplied furnishings (curtains, lampshades, pillows, for example) for their own. I don’t have a problem with this as long as the tenant then puts back these items at the end of the tenancy. What you don’t want is that the tenant swaps their ‘rubbish’ with your good stuff. This is why it is so important when preparing the inventory to
fully describe each item, quoting colour size, model and serial numbers where possible
even code mark your items with say a unique indelible mark.
Identifying extra items
Gaining unwanted ‘stuff’ is sometimes more of a problem than loosing items or having them replaced by inferior goods. My experience particularly with students and sharers is that tenants can use moving as an opportunity to discard their unwanted belongings. I’m sure that they think that they are being very generous and if you are an avid ‘car booter’ it can provide a continuous supply of delightful ‘bric-a-brac’. I’m not and it is very time consuming and expensive to get rid of items; particularly larger ones such as furniture and appliances. Local authorities will generally take large domestic items away for a small fee of about ?15; but why should you have to organise and pay for the removal of somebody else’s rubbish! I did have recently a case where a tenant left their car. Look out in particular for stuff being left in the cellar, attic and garage. These are all convenient hiding places often used by tenants. My advice is, don’t agree the ‘check out’ until the property is ‘completely’ cleared to your satisfaction.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents actually prefer this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents prefer that this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a pu
When I first attempted to make money online I was so naive just like any newbie. But I learned from the school of hard knocks. I learned by trial and error and by just doing.In the beginning I submitted my site to every search engine under the sun. I tried traffic exchanges, banner exchanges, FFA's, safelists, online classified ads etc. and not surprisingly I got zero results. If anything... I was very good at getting sp-ammed.I wasted weeks and even months of my time with stuff that didn't work. But little by little I started to head in the right direction. I dropped all the stuff that didn't work and looked for other ways to bring traffic to my site.I subscribed to a whole bunch of ezines and started posting fr-ee ads. The results weren't great but at least this time I was getting some results. My confidence started to build and I knew I was heading in the right direction.Then I started to spend a little money on my business and used pay per click search engines and things really started to take off for me and my confidence grew more.Then I started writing articles and press releases and and in the middle of all this I would spend time learning how to optimize my site for the major search engines to get a high ranking.The sales started coming in regularly. But I didn't sit back. I wanted to convert more of my visitors into customers.I added an opt-in form on my site to capture email addresses and set up an autoresponder to automatically follow up with my prospects. Eventually I added an alert box to capture email addresses which really exploded my mail list.I started learning more about copywriting and experimented with different copy and headlines etc. on my site to get maximum results until eventually I had a consistent sales machine over at http://www.ineedsmokes.comAnd when I had a sales machine that was on auto-pilot I then started pursuing other projects to make additional money.But you know, it took alot of work to get to this point. It is a constant learning process and I still try to learn as much as I can because you never "know it all."If you think you "know it all" you are finished because the internet changes so rapidly you'll quickly get left behind.If you're new to online marketing... it won't happen for you overnight. It will take work, dedication and even sacrifice.You need to keep working your business, be consistent and learn as much
Identifying substitute items
I’m afraid it is not uncommon for tenants to swap some of the smaller items of supplied furnishings (curtains, lampshades, pillows, for example) for their own. I don’t have a problem with this as long as the tenant then puts back these items at the end of the tenancy. What you don’t want is that the tenant swaps their ‘rubbish’ with your good stuff. This is why it is so important when preparing the inventory to
fully describe each item, quoting colour size, model and serial numbers where possible
even code mark your items with say a unique indelible mark.
Identifying extra items
Gaining unwanted ‘stuff’ is sometimes more of a problem than loosing items or having them replaced by inferior goods. My experience particularly with students and sharers is that tenants can use moving as an opportunity to discard their unwanted belongings. I’m sure that they think that they are being very generous and if you are an avid ‘car booter’ it can provide a continuous supply of delightful ‘bric-a-brac’. I’m not and it is very time consuming and expensive to get rid of items; particularly larger ones such as furniture and appliances. Local authorities will generally take large domestic items away for a small fee of about ?15; but why should you have to organise and pay for the removal of somebody else’s rubbish! I did have recently a case where a tenant left their car. Look out in particular for stuff being left in the cellar, attic and garage. These are all convenient hiding places often used by tenants. My advice is, don’t agree the ‘check out’ until the property is ‘completely’ cleared to your satisfaction.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents actually prefer this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents prefer that this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a pu
Pay Per Call is the next wave of advertising on the Internet. Similar to a Pay–Per–Click advertising. Pay Per Call has a lot more to offer and a wider audience in mind. The Pay-Per Call (PP-Call) is geared towards small businesses that do not have a web presence on the internet. However, this form of advertising can be used by all types of business or services offered on the net.Advertisers create an ad similar to a Pay-Per-Click (PP-Click) ad. Advertisers choose key terms in which they would like to appear under. They also choose their geographical location (local, regional or national) Pricing starts at $2 and can exceed $20. The ad itself consists of a headline and 2 additional lines of text, (including a URL if the company has one). Surfers then call the toll free number shown in the ad. After the surfer calls the number, the call is forwarded to the actual business phone. Seems pretty basic doesn’t it? But, I had a few questions I needed answered so I contacted Ingenio and spoke to them about their service.My first question regarded calls placed after business hours. If my business phones are manned Monday – Friday, 9 to 5, will calls still come in after 5pm on Friday? The answer is that currently there is no automated scheduling that will turn your ads on or off at a specified time. However, you can go in manually and pause your account so that your ads are not shown during non-business hours. The automated scheduling is in the process of being implemented but there is currently no set date for this to take effect. Of course, you can place your business hours in the ad as well but this may take up valuable space that could be better utilized describing products or services. Businesses that have a call center for after hours calls are effectively 24 hour businesses, so this should not be an issue for them.My next question concerned wrong numbers and short calls. We have all done it. We see one number and dial another. Or, we see something and on impulse we reach for the phone, and then change our mind ten seconds after dialing. So, does the advertiser pay for these types of calls? Is there a time limit a person needs to be on the phone for? There answer is yes. The calls need to last at least ten seconds. This should be more than enough time to establish that a wrong number as been dialed. I also wondered about people trying to beat the system. The trouble with PP-Click is that people may dial and occupy a salesperson with no intent other than to try and boost their r
‘Fair wear & tear’
The most common disagreements at the time of ‘check out’ occur around the topic of what constitutes ‘fair wear and tear’. It’s quite easy to decide on whether a bathroom cabinet is present or the cooker works. What is more difficult and subjective is whether the marks on the bedroom carpet are just a result of several years of use or red wine stains from exuberant parties. There is nothing in statute which defines ‘fair wear and tear’; the concept is too wide ranging to be enshrined in law. The Association of Residential Letting Agents (ARLA) has however produced some useful guidelines for its’ members on what to consider when coming to a view on it. These are:
* The original age, quality and condition of any item at commencement of the tenancy
* The average useful lifespan to value ratio (depreciation) of the item
* The reasonable expected usage of such an item
* The number and type of occupants in the property
* The length of the tenants occupancy
Legally a landlord should not end up, either financially or materially in a better position than he was in at the commencement of the tenancy or than he would have been at the end of the tenancy having allowed for fair wear and tear. It follows therefore (and is an established legal tenet) that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting “put back to the condition it was at the start of the tenancy.” This would constitute betterment; appropriate remedies available to the landlord might range from:
* Replacement of the damaged item where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable
* Repair or cleaning
* Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan
There is a technique for taking into account fair wear and tear and also avoiding betterment and it is called apportionment. Apportionment is the process of breaking down the costs of ‘fair wear and tear’ into measurable chunks and thereby allowing you to assign a monetary value to items in what can appear to be a very subjective process. It is probably best illustrated by way of some very general examples:
1. Minor damage to an item, a small to medium stain or mark on a carpet or mattress etc – perhaps ?15 - ?35 e.g. the cost of a “spot” clean or, this amount as the tenant’s contribution to a full clean of the whole item, or as compensation for the diminution. A small to medium size chip or mark, scratch or burn on a kitchen worktop – perhaps ?5 - ?25. A landlord could of course decide to a purchase a new item, to have a new carpet put down or a new kitchen worktop installed if they wished, but they cannot lawfully charge the tenant for the full cost. The costs should be apportioned and shared between the parties on the principles given above. E.g. cost of new carpet ?500 – apportioned ?465 to landlord, ?35 to tenant.
2. In the rare circumstances where damage ( to the worktop/carpet/mattress/ item etc) is so extensive or severe so as to affect the achievable rent level/lettability or quality of the property the most appropriate remedy might be replacement and to apportion costs according to the age and useful lifespan of the item. Below is an example of how this might be calculated.
(a) Cost of similar replacement carpet/item = ?500-00 (b) Actual age of existing carpet/item = 2 years (c) Average useful lifespan of that type of carpet/item = 10 years (d) Residual lifespan of carpet/item calculated as (c) less (b) = 8 years (e) Depreciation of value rate calculated as (a) divided by (c) ?50 per year (f) Reasonable apportionment cost to tenant calculated as (d) times (e)= ?400.00
What happens if there is a disagreement?
Prior to the Tenancy Deposit Scheme (TDS) the landlord or agent holding the deposit would make a deduction to cover the costs of damage and then would refund the balance to the ex-tenants within 10 working days of the final ‘check out’ being completed. The tenant would then either accept the landlords’ decision or take the matter to the county court to recover the contested amount. The TDS has changed this for tenancies created after the 6th April 2007. Refer to the section on the TDS for detailed guidance of what happens now.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.addyou.info/article/141109/addyou-How-To-Prepare-an-Inventory--UK-Residential-Landlords.html">How To Prepare an Inventory - UK Residential Landlords</a>
BB link (for phorums):
[url=http://www.addyou.info/article/141109/addyou-How-To-Prepare-an-Inventory--UK-Residential-Landlords.html]How To Prepare an Inventory - UK Residential Landlords[/url]
Related Articles:
Opening a Dollar Store - Watch Out for Store Traffic Changes!
Public Relations for Natural Gas
Search Engine Optimization and Search Marketing For Start Ups
Bookmark it:
|